What Happened
- PM Narendra Modi completed a two-day state visit to Israel (February 25-26, 2026) — his first visit in nine years — at the invitation of PM Benjamin Netanyahu.
- India and Israel upgraded bilateral ties to a "Special Strategic Partnership for Peace, Innovation and Prosperity," a formal elevation reflecting the depth of defence, technology, and trade cooperation.
- The visit yielded 27 bilateral agreements spanning defence, innovation, manufacturing, artificial intelligence, cybersecurity, and cultural exchange.
- Israel plans to transfer Iron Dome and Iron Beam missile defence technology to India, as part of a defence deal estimated at $8-10 billion — the largest in India-Israel defence history.
- Modi announced the establishment of a "Critical and Emerging Technology Partnership" and both sides declared intent to negotiate a Free Trade Agreement (FTA) to further deepen economic ties.
- India has been Israel's largest arms export customer, accounting for approximately 34% of Israel's total arms exports between 2020-2024 (estimated value: $20.5 billion over the decade).
Static Topic Bridges
India-Israel Defence Cooperation: From Kargil to Iron Dome
India and Israel established full diplomatic relations in January 1992, after which defence and intelligence cooperation grew rapidly. India turned to Israel during the Kargil War (1999), when Israel rapidly supplied Barak missiles and UAVs that proved critical in the conflict. Since then, the defence relationship has deepened into co-development, joint production, and technology transfer.
- Key systems India has procured from Israel: Barak-1 and Barak-8 (surface-to-air missiles), Heron and Searcher UAVs (surveillance and reconnaissance), Spike anti-tank guided missiles (ATGM), Harop loitering munitions (kamikaze drones), Phalcon AWACS (airborne warning and control system).
- Barak-8 is a jointly developed (IAI + DRDO) medium-range surface-to-air missile with a range of up to 70 km; inducted into Indian Navy and Army.
- India accounted for approximately 34% of Israel's total arms exports (2020-2024), making it Israel's top defence customer.
- Over the past decade, India imported $2.9 billion in Israeli military hardware.
- Iron Dome: an active air defence system developed by Rafael Advanced Defense Systems and IAI, designed to intercept and destroy short-range rockets and artillery shells; a "point defence" system against projectiles fired at ranges of 4-70 km.
- Iron Beam: a directed-energy (high-energy laser) air defence system designed to intercept rockets, artillery, mortar rounds, and drones at very low per-intercept cost; being deployed in Israel since 2024.
Connection to this news: The transfer of Iron Dome and Iron Beam technology — if finalised — would be a transformational enhancement to India's layered air defence architecture, especially relevant for protection of critical infrastructure and forward military positions against drone and rocket threats.
India's Defence Indigenisation and "Make in India" in Defence
India's defence policy has undergone a structural shift since 2014 under the "Make in India" initiative and successive Defence Production and Export Promotion Policies (2020, 2023). The goal is to reduce import dependence, build domestic industrial capacity, and become a net defence exporter.
- India's defence budget (2025-26): approximately ₹6.81 lakh crore ($81 billion), one of the world's largest.
- Defence exports target: ₹50,000 crore ($6 billion) per year by 2029 (up from ₹21,083 crore in FY2023-24).
- Positive Indigenisation Lists (PIL): India has issued four lists banning import of specified defence items to force domestic development.
- DRDO is a key partner in joint development: Barak-8, Akaash missile system, and proposed co-development with Israel on next-generation systems.
- Joint production with Israel means technology transfer, establishing manufacturing lines in India under the Defence Acquisition Procedure (DAP 2020), and potentially exporting jointly developed systems.
Connection to this news: Modi's statement about "joint development, joint production and transfer of technologies" with Israel is squarely within the Make in India defence framework — the $8-10 billion deal would establish Israeli technology in Indian production lines, reducing future import dependence.
Cybersecurity and Critical & Emerging Technologies: India-Israel Cooperation
Cybersecurity is a rapidly growing area of India-Israel cooperation. Israel is globally recognised as a leading cybersecurity hub, home to companies like Check Point, NSO Group (controversial), and CyberArk, and is a pioneer in offensive and defensive cyber capabilities. India, with its large IT sector and growing digital infrastructure, is both a target of cyberattacks and a potential partner in cybersecurity capacity building.
- India-Israel Cyber Policy Dialogue: inaugural session held in March 2025.
- Both countries announced a Letter of Intent to establish an India-Israel Centre of Excellence in Cybersecurity in India, focusing on: human capacity building, AI-driven cyber defence, applied research, and joint tabletop exercises.
- India's National Cyber Security Policy (2013) and the Computer Emergency Response Team (CERT-In) are the primary civilian cyber defence institutions; the Defence Cyber Agency (DCA) handles military cyber.
- Israel has faced sophisticated state-sponsored cyberattacks and developed advanced counter-measures — sharing this expertise with India enhances India's resilience.
- The UPI (Unified Payments Interface) expansion to Israel was also announced during the visit, extending India's digital payment infrastructure internationally.
Connection to this news: The "Critical and Emerging Technology Partnership" announced during the Modi visit institutionalises India-Israel cooperation in AI, quantum computing, semiconductors, and cybersecurity — areas that will determine long-term technological and military competitiveness.
India-Israel Free Trade Agreement: Trade Architecture and Potential
India and Israel have not had a bilateral free trade agreement despite decades of defence and people-to-people ties. The announcement of intent to "conclude negotiations this year" is significant because it would formalise preferential trade access covering goods, services, investment, and intellectual property.
- India-Israel bilateral trade: approximately $7.1 billion (2022-23), excluding defence.
- Major Indian exports to Israel: diamonds (rough and polished), pharmaceuticals, machinery, and textiles.
- Major Israeli exports to India: electronic components, chemical products, diamonds, and agricultural technology.
- The bilateral relationship has been asymmetric — defence dominates, while civilian trade remains underutilised.
- An FTA could boost agri-tech, water management, and drip irrigation technology transfer (Israel is a global leader in precision agriculture, directly relevant to India's farm productivity goals).
Connection to this news: An India-Israel FTA alongside the Special Strategic Partnership signals a comprehensive deepening of ties — elevating the relationship from primarily a defence partnership to a broader economic, technological, and strategic alliance.
Key Facts & Data
- Modi's Israel visit: February 25-26, 2026 (first in 9 years)
- Agreements signed: 27 bilateral agreements across defence, AI, innovation, manufacturing, culture
- Defence deal size (proposed): $8-10 billion (Iron Dome + Iron Beam technology transfer)
- India's share of Israeli arms exports (2020-2024): ~34% (~$20.5 billion total over decade)
- India's defence imports from Israel (past decade): $2.9 billion
- Barak-8 range: up to 70 km; jointly developed by IAI (Israel) + DRDO (India)
- Iron Beam: high-energy laser intercept system; operational in Israel since 2024
- India-Israel Cyber Policy Dialogue: inaugural session, March 2025
- UPI expansion to Israel: announced during Modi's 2026 visit
- India-Israel bilateral trade (non-defence): approximately $7.1 billion (2022-23)
- Upgrade status: from "Strategic Partnership" to "Special Strategic Partnership for Peace, Innovation and Prosperity"
- India-Israel diplomatic relations established: January 1992